Second bank account

nikki.lizzy.brizzy

I need a new way of budgeting, so I'm thinking of getting a second bank account.

I want to continue getting my salary paid into my HSBC current account, and keep all my direct debits etc going out of there. But I want to transfer my surplus (after savings) into a separate account with it's own debit card that I can just have for spending.

It looks like a basic bank account might be my best bet. But are these just for people with poor credit ratings? And are there any other drawbacks?

Cat2011

I don't know much about the basic accounts - you could probably ask for a normal account and refuse the overdraft? I have 5 current accounts which I put different parcels of money in. e.g. one for the car spending, one for my personal spending etc. The personal spending one is great, because once the money has gone - that's it - no more spending that month. Helps me keep control.

Gromitt

You can open any account. It really depends on your surplus. I'd probably go for a Santander 5% account - it needs £1,000 per month but you can just transfer the £1,000 and then transfer back to leave you with your surplus. (Ie, if you surplus is £300, then transfer in £1000 and transfer back out £700 the next day). IMO, worth it for the 5% for the 12 months.

If you don't want the hassle, then maybe something like Nationwide or Barclays may be useful - depends if your interested in contactless technology or not.

Or you can go for a real basic account like the co-op cash minder.

Going4TheDream

nikki.lizzy.brizzy wrote: »

I need a new way of budgeting, so I'm thinking of getting a second bank account.

I want to continue getting my salary paid into my HSBC current account, and keep all my direct debits etc going out of there. But I want to transfer my surplus (after savings) into a separate account with it's own debit card that I can just have for spending.

It looks like a basic bank account might be my best bet. But are these just for people with poor credit ratings? And are there any other drawbacks?

I do the same, one for bills, one for annual or non monthly bills/holidays etc and one for personal expenses. I use a basic account for personal expenses, no fee but a debit card. No downsides really except the odd call from the bank trying to convince me of the benefits of upgrading to a value added account ...for a monthly fee of course!

jen245

I have a Halifax Reward account for my spends, if you can cycle £1000 per month through the account, it gives you £5

nikki.lizzy.brizzy

Thanks for the replies. In the end I applied for a basic natwest account but they offered me the normal current account, so I went for that without the overdraft.